NEWS
DTN Business Blog
Marcia Zarley Taylor DTN Executive Editor
Thu Jul 12, 2007 04:27 PM CDT

Farmers expect big jolts in cash rent next time leases come up for renewal, thanks to the Ethanol-a-Palooza, as farmer Adam Erwin describes it. But our discussion on what's a "fair" cash rent for 2008 leads me to some conclusions: In the short run, landlords don't care much about a renter's cost of production, just as renters shouldn't care about a landlord's return on investment. Some anxious renters may over bid cash terms this year, without taking their higher input costs into account. Most growers feel uncomfortable forward pricing grain on farms without long-term leases. Farm program rules, as yet unknown, ...

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